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3 Hidden Pitfalls of a Last Will and Testament
My best friend was talking with her mother recently about her parents' estate plan. Her mother told my friend that they had Wills in place and that everything was owned jointly with her dad, so no worries. My best friend then called me because she knows I speak frequently on estate planning, so she wanted to know if that was all her parents needed. She was shocked to find out that jointly owned assets are frozen when one spouse dies, and that she and her sister could lose part or even all of her parents' assets if they aren't prepared with just more than a Will! Needless to say, when I told her about the options to make things easier on her parents when one passed, not to mention how to preserve all that her parents had worked so hard for, she was ecstatic! Here is what I told her:
Why a Will May Not Be the Best Plan. A basic estate plan for families with few assets, like a car and bank accounts should consist of a Will, a living will, a healthcare power of attorney, guardianship provisions for the care of any minor children, and a financial power of attorney. BEWARE though: Often people think if you own assets joint with a spouse or adult child, like a bank account for example, then nothing is frozen and no probate. Wrong! You only own 50% of the asset with the deceased person (except real estate held by tenants by the entirety) so the other half of the asset is frozen when your loved one dies, which means it must go through Court Probate for you to gain access to the other half. Yes, you heard right- you cannot just give everything to loved ones named in a Will. A Last Will and Testament has to go through the Court Probate Process.
So, for those who want to avoid the costs of probating a Will, or who want to make things simple for their family, or who have more than basic assets, or where there is a family situation such as a blended family or a special needs loved one, the basics create more difficulties not to mention expense to the family in the end. It's important to know all of your options in order to really feel that you have the perfect plan in place for you and your family!
Here are some popular options that often meet the goals of the families in those situations:
* Avoid Probate and the Costs: If you have a Will (or even if you don't), assets in your name are frozen when you die. Your family cannot get money from your bank account, cannot transfer your stock, and cannot even sell your car... until they get through Court Probate, which may take months to years. Now, add in the costs of Probate on top of the time and inconvenience! Why not skip the probate and make it super easy for your family when you are gone? If you have your assets in a Living Trust, you avoid all that mess, so when one spouse dies, there is no probate! And when you are both gone, the family has complete access to do what you want them to do with your assets without all the delay and costs.
* Medicaid Planning to Avoid Nursing Home Poverty: Medicare will not provide for long term nursing home care (more than 90 days, and usually not at all). So, when the time comes, it is important to ensure your income and assets are below the thresholds that will allow you to qualify for Long Term Medicaid coverage. Otherwise, you may find yourself subject to spend down provisions that will quickly eat up your assets, as well as your spouse's, leaving nothing behind for your family. There are certain trusts that protect assets while still allowing you to be eligible for Medicaid benefits, all while maintaining your lifestyle and preserving assets for your family.
* Protect Special Needs Disability Benefits: If you have a loved one who has special needs, you want to provide for the long-term care of the person. At the same time, it is important to ensure they have access to Medicaid and other programs to supplement their resources. When someone with special needs inherits assets in their own name, the end results can mean a complete loss of governmental support like health care and income support! When planning for such special loved ones, a Trust is necessary. "Why?" You say. Because to do anything different can lead to your loved one losing the biggest benefits they have to help care for them after you are gone! But not just any type of trust will do. Trusts for special needs loved ones should be set-up to allow access to funds for making your loved one's life more enjoyable and supported, but being careful so the funds do not exclude or jeopardize them from governmental benefits.
Contact our team at Thomas Walters Estate Planning for a complete review of your estate plan. We will educate you about all the options you have to reach your goals so you can find the peace of mind that comes with knowing you have the perfect plan in place. Since every estate plan is customized for our clients, you're ensuring you have exactly what is needed to make your plan complete, simple and easy for you and your family.
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Snapping With Shayla
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| Stacey Walters daughter Shayla |
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When Shayla's heart unexpectedly stopped at 5 months old, she was left severely disabled. Her story forms the pillar of our practice: If we aren't prepared for the unexpected, the people we hurt the most are the ones we love, so we all need a plan! But not just any plan- a perfect plan for your family! At Thomas Walters, PLLC, our goal is to educate you, so you know that the plan you have is perfect! Today and always.
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Estate Planning Seminar Dates
Attend a free upcoming Educational Event! Limited Seating!
Register today! 888-787-1913
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Raleigh
Monday, October 16
Nantucket Grill
1145 Falls River Ave.
6:30-8:00pm
Dinner following
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Raleigh
Tuesday, October 17
Coquette Basserie
4351 The Cir A N Hills, St.
11:00am-12:30pm
Lunch following
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Cary
Tuesday, October 17
Lugano
1060 Darrington Dr.
5:30-7:00pm
Dinner following
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Cary
Wednesday, October 18
Egg and I
1104 Ledsome Lane,
Suite 101
10:30am-12:00pm
Lunch following
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Cary
Wednesday, October 18
Dean's Kitchen and Bar
1080 Darrington Dr.
6:30-8:00pm
Dinner following
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Apex
Monday, October 23
Peak City Grill
126 N. Salem St.
6:30-8:00pm
Dinner following
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Durham
Tuesday, October 24
Bocci
5850 Fayetteville Rd.
11:00am-12:30pm
Lunch following
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Carrboro
Tuesday, October 24
Hickory Tavern
370-110 E. Main St.
6:30-8:00pm
Dinner following
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Durham
Wednesday, October 25
Bocci
5850 Fayetteville Rd.
6:30-8:00pm
Dinner following
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Client Testimonial
"Attorney Stacey Walters and the Firm relieved our worries about estate planning. Her poignant, concise, explanation of estate planning is remarkable. We have many kudos for Mrs. Walters: fabulous, legendary, excellence in her practice. Thank you."
- Mr. & Mrs. Szalacsi, Wake Forest, NC
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Locations
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Chapel Hill:*
1000 Environ Way
3rd Floor, Regus Offices
Chapel Hill, NC
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Raleigh-
Main:
Access Office Center
8801 Fast Park Dr. Ste. 301 Raleigh, NC 27617
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ExecuBusiess Center
10130 Mallard Creek Rd. Ste. 300 Charlotte, NC 28262
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4904 Waters Edge Dr.
Ste. 159
Raleigh, NC 27606
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Charlotte-
South:
Ballantyne Business Center 13850 Ballantyne Corporate Pl. Suite 500
Charlotte, NC 28277
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Greensboro:*
Byron Offices Suites
7-B Corporate Center Dr. Greensboro, NC
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* by appointment only
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